Rumble (NASDAQ:RUM) Trading Up 7.9% - What's Next?

Key Points

• Rumble shares rose 7.9% on Monday to about $7.03 (intraday high $6.95) while trading roughly 1.07M shares, about 51% below its average daily volume.
• The company missed quarterly EPS ($0.13 loss vs. $0.11 expected) on $27.07M revenue (down 10.3% y/y) and remains unprofitable with negative margins, and the stock carries an average analyst rating of "Sell".
• Insiders are heavily concentrated owners—Tether bought 44,355 shares recently and insiders collectively hold about 70.10% of the stock.

Rumble Inc. (NASDAQ:RUM - Get Free Report)'s stock price rose 7.9% on Monday . The stock traded as high as $6.95 and last traded at $7.0340. Approximately 1,068,710 shares traded hands during mid-day trading, a decline of 51% from the average daily volume of 2,174,784 shares. The stock had previously closed at $6.52.

Analysts Set New Price Targets

Separately, Weiss Ratings restated a "sell (e+)" rating on shares of Rumble in a research note on Thursday, January 22nd. One equities research analyst has rated the stock with a Sell rating, According to MarketBeat, the company has an average rating of "Sell".

Rumble Stock Performance

The company has a 50-day simple moving average of $5.49 and a 200-day simple moving average of $6.16. The company has a market cap of $3.12 billion, a price-to-earnings ratio of -22.48 and a beta of 0.71.

Rumble (NASDAQ:RUM - Get Free Report) last posted its earnings results on Thursday, March 5th. The company reported ($0.13) EPS for the quarter, missing analysts' consensus estimates of ($0.11) by ($0.02). Rumble had a negative return on equity of 39.76% and a negative net margin of 81.32%.The firm had revenue of $27.07 million for the quarter, compared to analysts' expectations of $27.09 million. During the same quarter in the previous year, the firm posted ($1.15) earnings per share. The firm's revenue for the quarter was down 10.3% compared to the same quarter last year. As a group, equities research analysts forecast that Rumble Inc. will post -0.32 EPS for the current year.

Insider Transactions at Rumble

In other Rumble news, major shareholder Tether Global Investments Fund bought 44,355 shares of Rumble stock in a transaction that occurred on Friday, February 6th. The shares were acquired at an average price of $5.48 per share, for a total transaction of $243,065.40. Following the acquisition, the insider owned 105,174,015 shares of the company's stock, valued at $576,353,602.20. The trade was a 0.04% increase in their position. The acquisition was disclosed in a filing with the SEC, which can be accessed through this link. Insiders have purchased 777,012 shares of company stock worth $4,222,236 in the last ninety days. 70.10% of the stock is owned by insiders.

Institutional Trading of Rumble

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Meeder Asset Management Inc. bought a new position in Rumble during the 3rd quarter worth approximately $28,000. Mather Group LLC. acquired a new position in shares of Rumble during the third quarter worth approximately $43,000. Northwestern Mutual Wealth Management Co. bought a new position in shares of Rumble in the fourth quarter worth $47,000. Daiwa Securities Group Inc. increased its stake in Rumble by 47.8% during the 4th quarter. Daiwa Securities Group Inc. now owns 9,254 shares of the company's stock valued at $58,000 after buying an additional 2,993 shares during the period. Finally, VestGen Advisors LLC bought a new stake in shares of Rumble in the 4th quarter worth $64,000. Institutional investors own 26.15% of the company's stock.

Rumble Company Profile

Rumble Inc operates a video-sharing platform designed to offer creators and audiences an alternative to traditional social media and streaming services. The company's primary business activities include hosting, distributing and monetizing user–generated and professional video content. Through its platform, Rumble enables content creators to retain a higher share of advertising revenue and maintain greater control over their intellectual property, while offering viewers open access to a wide range of videos spanning news, sports, entertainment and educational programming.

In addition to its core video platform, Rumble provides cloud–based video hosting and delivery services via Rumble Cloud, a content–delivery network (CDN) designed to support high–volume streaming and storage.

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